Kyocera Corporation has established its new Nagasaki Isahaya Plant in Isahaya City, Nagasaki Prefecture, holding a completion ceremony on September 1, 2026. This strategic expansion aims to boost production capacity to meet the surging global demand for advanced semiconductor-related components, driven by rapid advancements in AI technologies and the widespread adoption of electric vehicles.

Kyocera’s First New Domestic Plant in 21 Years Commemorates Completion on September 1, 2026

On September 1, 2026, leading electronic components manufacturer Kyocera Corporation marked a major milestone by holding the completion ceremony for its new Nagasaki Isahaya Plant in Isahaya City, Nagasaki Prefecture. This facility represents Kyocera’s first new manufacturing plant built in Japan in 21 years, highlighting the strategic significance of this development. Designed to address the rapidly growing demand for semiconductor-related components—fueled by the expansion of artificial intelligence (AI) and advanced telecommunications infrastructure—the plant is positioned as a core hub driving the company’s mid-to-long-term growth. The ceremony was attended by Kyocera’s President and Representative Director, Shirou Sakushima, and other executives, who expressed a strong commitment to building this new production framework. Following its official establishment on September 1, 2026, the factory will gradually install equipment and run pilot operations, with full-scale commercial production scheduled to begin in the spring of 2027. As a new landmark for Nagasaki’s semiconductor industry, the plant is beginning its final preparations to deliver high-value-added products from Nagasaki to the global market.

A Massive 68-Billion-Yen Investment Yields One of Japan’s Largest Production Facilities

The Nagasaki Isahaya Plant is a colossal production hub representing a massive investment of approximately 68 billion yen by Kyocera through fiscal year 2028 to secure mid-to-long-term production capacity. The facility sits on a vast site of approximately 154,000 square meters, with the newly completed Phase 1 factory building standing as a six-story steel structure. Boasting a footprint of 14,959 square meters and a total floor area of approximately 80,799 square meters, it ranks as one of Kyocera’s largest factory buildings in Japan. This spacious layout allows for the seamless integration of additional production equipment in response to future market dynamics. Manufacturing machinery will be introduced in stages aligned with the operational rollout. Kyocera plans to scale production at this single location to an annual output of 25 billion yen from fiscal year 2030 onward, establishing a robust infrastructure in Nagasaki to anchor the company’s semiconductor-related business. Refer to the rendering below for a visual overview of the facility.

The Role of the New Plant and the Drivers Behind Semiconductor Demand

Boosting Production of Advanced Semiconductor Packages and Fine Ceramic Components

The primary mission of this new facility is to dramatically bolster the supply of fine ceramic components and semiconductor packages, addressing concerns of global supply shortages. Specifically, the plant will produce fine ceramic components such as electrostatic chucks and stages for photolithography equipment—critical parts integrated into semiconductor manufacturing systems that require extreme thermal and corrosion resistance. Another major focus is expanding the capacity for ceramic packages, a product category where Kyocera holds the world’s leading market share. Ceramic packages are indispensable components that protect delicate semiconductors and electronic devices from external shock and heat while enabling electrical connections with other devices. By expanding the advanced technologies and production systems nurtured over the years at its existing Shiga and Kagoshima plants, Kyocera is setting up a highly responsive supply chain capable of quickly delivering on global customer demands.

Surging Demand Fueled by AI Data Centers and EV Adoption

This massive investment and the construction of the new plant are backed by multiple mega-trends in the technology sector. In particular, the explosive growth of the data center market to support generative AI, alongside the evolution of the automotive industry toward electric vehicles (EVs) and advanced driver-assistance systems (ADAS), has driven demand for semiconductors and electronic devices to unprecedented levels. Over the past two years, Kyocera faced a bitter challenge as it struggled to supply enough products to satisfy this sudden surge in semiconductor-related demand. Consequently, the company decided to upgrade its existing factories through scrap-and-build initiatives while simultaneously building an entirely new base like the Nagasaki Isahaya Plant to fundamentally increase supply capacity. Establishing a rapid mass-production system at this new facility is crucial for Kyocera to keep pace with ongoing technological breakthroughs, such as 3D sensors for autonomous driving and next-generation power devices.

Why Isahaya, Nagasaki Was Chosen and Its Regional Economic Impact

Isahaya’s Superb Transport Infrastructure and Agile Tech-Savvy Governance

Kyocera’s decision to select Isahaya City, Nagasaki Prefecture, as the site for its new plant was driven by the region’s outstanding geographic advantages and the local government’s highly proactive recruitment efforts. Isahaya has established itself as a key logistics hub in western Kyushu, boosted by the opening of the Nishi-Kyushu Shinkansen and the city’s investment of over 20 billion yen in arterial access roads. The site offers seamless access to Nagasaki Airport, expressways, and local ports, enabling smooth integration with the semiconductor supply chain stretching across Kyushu. Furthermore, the agility of local government officials played a decisive role. Isahaya City has adopted a tech-savvy administrative approach, appointing engineering and science graduates to leadership positions, including the deputy mayor. This allows the local government to understand the technical requirements of a semiconductor plant, such as water resources and power loads, and offer logical solutions on the spot. This technical alignment directly enabled the swift allocation of land and the rapid success of the recruitment process.

Securing Local Young Manufacturing Talent and the Outlook Ahead

The most anticipated aspect of the new plant’s future lies in its impact on regional employment and sustainable talent recruitment. Although Kyocera will launch operations with a streamlined team of about 40 staff, the company has ambitious long-term plans to scale the workforce to approximately 1,000 employees. Nagasaki Prefecture is home to numerous high-quality educational institutions, including technical high schools, colleges of technology (Kosen), and universities, which consistently produce skilled and dedicated manufacturing talent. President Shirou Sakushima has highly praised this environment, noting the region’s ability to provide a steady supply of young talent in both quantity and quality. Recruitment drives targeting local high school students are already underway, paving the way for young people to build rewarding careers locally. In Nagasaki Prefecture’s growth strategy, which aims to expand the annual production value of semiconductor-related industries to over 1 trillion yen in five years, the successful ramp-up of Kyocera’s new plant will serve as a symbolic milestone.

Reference Pages

• 【Kyocera Holds Completion Ceremony for Nagasaki Isahaya Plant | News Release | Kyocera】https://www.kyocera.co.jp/newsroom/news/2026/003038.html

【#Kyocera #SemiconductorPackage #FineCeramics #IsahayaNagasaki #BusinessAttraction #RegionalEconomy #IndustrialPromotion】